Peloton unveiled three new treadmills on Tuesday, led by the $2.2K Tread Flex, its cheapest and first foldable model. All three go on sale Oct. 1, with the midrange Tread Vision priced at $3.5K, up $200 from its predecessor, and the Tread+ Vision holding at $6.7K.
The Tread Flex folds to roughly half its floor space and reaches 70 decibels at its top speed of 12.5 miles per hour, Peloton said. Its smaller footprint and lower price could appeal to apartment dwellers put off by the size and cost of traditional treadmills.
At the other end, the Tread+ Vision adds a sled mode with up to 300 pounds of resistance for hybrid racers training for events like HYROX.
The AI layer is the retention bet
Peloton is also expanding Peloton IQ, the AI platform it launched last year, with new tools for runners.
Run Analysis uses live video to assess running efficiency and provide feedback on pace, form, and heart rate. IQ Pace Targets sets personalized speed ranges based on recent performance.
Many features will also work on older Tread models, giving existing owners access to the new tools without buying another machine.
The company is adding Whoop to its existing data-sharing integrations with Apple Health, Fitbit, and Garmin Connect.
Revenue has fallen every year since fiscal 2021
Peloton's revenue has declined each year since peaking at $4.02B in fiscal 2021. The stock is down 97% from its January 2021 closing high of $167.42.
Stern took the CEO job in January 2025. Shares have dropped 43% since, even as he stabilized the balance sheet, restored profitability, and improved cash generation.
Last October's product relaunch failed to lure shoppers back, and the company conducted another round of layoffs early this year. In August, its fiscal 2027 revenue forecast disappointed investors.
The treadmill push follows the market. North America's at-home treadmill category is forecast to grow 40% to $5.6B by 2030, while stationary bikes grow far slower. The competitive problem is free. People can run outside, use cheap walking pads, or join budget gyms.
"The fitness landscape is evolving toward more sustainable and habitual routines."
Joe Vennare, cofounder of Fitt Insider
Peloton is also pushing distribution beyond its own store, putting more than 1,400 classes in front of Spotify Premium subscribers and selling commercial equipment to hotels and gyms.
Truist's Youssef Squali rates the stock buy with a $9 target, but expects revenue to stay muted on subscriber headwinds. The holiday quarter will show whether cheaper hardware moves the number.
